Less than three months into Philadelphia's new tax on sweetened drinks, the stakes have escalated: Beverage makers say the measure is hurting sales so much they need to cut jobs, while city officials say the moves are a ploy to get the tax struck down.

Could the tax be implemented nationwide? Here are five things you need to know about it:

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1. It went info effect on the first day of 2017

The tax began Jan. 1 and is levied on transactions between drink distributors and retailers, but many grocers are passing it on to drinks amid an "Ax the Bev Tax" campaign to kill the measure in court or through repeal. One widely shared photo on social media shows a receipt for a 12-pack of 16.9-ounce bottles of Propel Water, which is artificially sweetened. The receipt says the drinks cost $5.99, and the tax adds $3.04.

2. Some shoppers are finding ways to avoid the "soda tax"

IGA supermarket has hung signs near affected drinks that say "Philadelphia Sugar Tax Item," with the price of a 2-liter of Coke going from $1.99 to $3.

Fran Flanagan, also shopping at IGA, said he planned to buy more of his drinks outside the city on weekends, and noted the tax has changed his drinking habits.

"Mostly I'm drinking spigot water, and not because it's healthier," said Flanagan, who opposes the beverage tax.

3. Philadelphia is one of the first US cities to implement the tax

The City of Brotherly Love is among the first U.S. cities to implement such a special per-ounce tax. While officials touted it as a way to raise money for pre-K education — not as a health measure as in other cities — some advocates also hail it as a way to fight sugary drink consumption and obesity. For the beverage industry, which has already seen soda consumption decline for several years, overturning the tax in Philadelphia could be critical in sending a message to other cities and stopping the measures from gaining momentum.

4. The tax may be hurting soft drink manufacturers

In Philadelphia, PepsiCo says sales are down 40 percent compared to a year ago since the 1.5-cent per ounce tax took effect, and it will need to cut 80 to 100 workers. A Canada Dry bottler says sales are down 45 percent and it had to lay off about 30 employees. ShopRite owner Wakefern also says overall sales at Philadelphia stores are down as much as 25 percent as people go outside the city to get groceries, and that it had to cut hours for workers.

Mayor Jim Kenney's office notes that the law does not require distributors and retailers to pass on the cost of the tax, and says people should be skeptical about the need for layoffs since the business coalition is trying to overturn the tax.

"They are literally holding hostage the jobs of hardworking people in their battle to overturn the tax," spokeswoman Lauren Hitt said. The city also said the pre-K program the tax supports has created about 250 jobs.

5. More people are opting for other drinks

Bob Brockway, who heads the local Canada Dry bottler, said he thinks bottled waters are benefiting to a degree. Sales of bottled water had already been growing nationally as soda consumption has declined, but Brockway said the growth of his relatively small bottled water business has accelerated.

Nestle, the biggest bottled water player, says it sees no evidence of a sales spike in the region. Coca-Cola is part of the coalition opposing the tax, but hasn't disclosed sales figures or announced layoffs.